Hello,

I have been having to get Amazon to manually reimburse the VAT they are keeping from refunds.

Customer doesn’t return a product within the return window and Amazon therefore refund me (taking their fees) but they are also keeping 20% for VAT e.g.

Total Reimbursement: £175.39

Unit Sale Value with Tax: 264.84 GBP
Unit Tax: 44.14 GBP
Unit Value: 220.70 GBP
Unit Fees: 45.31 GBP
Net Amount (Value - Fees): 175.39 GBP.

I originally came out after fees of the original transaction with £238.57.

I can understand them keeping the VAT on lost inventory, or damaged as it isn’t a sale. But what happens when an item is sold, not returned and reimbursed and I’ve already paid VAT to HMRC and then Amazon keeps it again?

I am not enrolled into any VAT calculation services and just need some direction on if they are doing it right, or do I need to check every single refund they’ve processed?

Edit I have uploaded an image of an example of a reimbursement for a customer not returning FBA stock.

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